Lear Corporation (NYSE: LEA), a global automotive technology leader in seating and electrical and electronic systems, today reported results for the third quarter 2019. Highlights include:
- Sales of $4.8 billion, compared to $4.9 billion in the third quarter of 2018
- Net income of $216 million and adjusted net income of $217 million, compared to $253 million and $269 million, respectively, in the prior year
- Core operating earnings of $338 million, compared to $399 million in the third quarter of 2018
- Earnings per share of $3.58and adjusted earnings per share of $3.54, compared to $3.80 and $4.09, respectively, in the third quarter of 2018
- Net cash provided by operating activities of $343 million and free cash flow of $193 million
“In the third quarter, we continued to face a challenging operating environment, with global industry production down 3% year over year,” said Ray Scott, Lear’s President and Chief Executive Officer. “Despite these headwinds, we delivered solid quarterly financial results. We recognize that industry conditions remain challenging, but we continue to focus on driving operational efficiencies, investing for long-term profitable growth, and delivering superior shareholder returns.”
Third Quarter Financial Results
Sales in the third quarter decreased 1% to $4.8 billion, reflecting lower production on Lear platforms and net foreign exchange rate fluctuations, partially offset by the addition of new business. Excluding the impact of foreign exchange and the Xevo acquisition, sales were flat.
Core operating earnings were $338 million, or 7.0% of sales, compared to $399 million, or 8.2% of sales, in 2018. In the Seating segment, margins and adjusted margins were 7.6% and 8.2% of sales, respectively, in the quarter. In the E-Systems segment, margins and adjusted margins were 6.7% and 7.6% of sales, respectively, in the quarter.
Earnings per share were $3.58. Adjusted earnings per share were $3.54 per share, down from $4.09 per share in 2018, reflecting lower operating earnings, partially offset by a reduced share count.
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SOURCE: Lear
